Reliance Industries Ltd (RIL) has acquired Urban Ladder Home Decor Solutions Private Ltd. for Rs 182.12 crore, to expand its presence in India’s fast-growing e-commerce market.
Reliance Retail Ventures Ltd. (RRVL), RIL’s retail unit has bought 96 per cent stake of Urban Ladder and also has the option to buy the remaining 4 per cent stake in the company, said the company in a stock exchange filing. Further, RRVL proposes to invest up to Rs 75 crore by taking its ownership to 100 per cent in an online furniture seller, which is expected to be completed by December, 2023.
“The aforesaid investment will further enable the group’s digital and new commerce initiatives and widen the bouquet of consumer products provided by the group while enhancing user engagement and experience across its retail offerings,” said RIL in a filing.
The acquisition of Urban Ladder comes after three months when RIL’s reyail unit has acquired majority stake in online pharmaceutical firm Netmeds for Rs 620 crore.
The eight-year-old furniture e-tailer operates digitally and has a chain of retail stores in several cities across India. In 2018, it was valued at Rs 1,200 crore which dropped to Rs 750 crore in 2019. Its audited revenue was Rs 434 crore, Rs 151.22 crore and Rs 50.61 crore and posted a profit of Rs 49.41 crore in FY19, while losses of Rs 118.66 crore and Rs 457.97 crore in FY18 and FY17 respectively, according to the exchange filing.